A diversified alternative asset manager, similar to Blackstone.

BlackRock, but focused entirely on private markets and alternative investments rather than public stocks and bonds.

Like the private investment divisions (e.g., private equity, private credit, real estate) of a major investment bank like Goldman Sachs, but operating as an independent firm.

• Credit Strategies: Providing investment management services for funds focused on a broad range of private and liquid credit investments.
• Private Equity Strategies: Offering investment management for funds investing in equity of private companies across various sectors and stages.
• Real Estate Strategies: Managing investment funds dedicated to debt and equity investments in diverse real estate assets and companies.
• Infrastructure Strategies: Supplying investment management for funds focused on global infrastructure assets, including energy, utilities, and digital infrastructure.
• Strategic Initiatives & Secondaries: Delivering investment management for funds pursuing opportunities like secondary market transactions and other specialized strategies.

Ares Management (symbol: ARES) is an alternative investment manager. Unlike companies that sell products or services in a traditional sense, Ares primarily raises capital from various investors to deploy into its credit, private equity, real estate, and infrastructure strategies. Therefore, its "customers" are effectively the investors who commit capital to its funds.

Given the nature of its business, Ares serves a mix of institutional investors (which are typically corporate entities) and sophisticated individual investors. Since Ares does not publicly disclose specific institutional investors as "major customers" with names and symbols, and its client base is diversified across types of investors, describing categories of customers is the most appropriate way to answer the prompt for an asset manager.

Ares Management primarily serves the following categories of investors (its "customers"):

• Institutional Investors: This is the largest category and includes entities such as public and corporate pension funds, sovereign wealth funds, endowments, foundations, insurance companies, and other large financial institutions. These organizations commit substantial capital to Ares's various investment funds and strategies.
• High-Net-Worth Individuals and Family Offices: This category comprises wealthy individuals and the private entities they use to manage their investments. These sophisticated investors allocate capital to Ares's funds, often through direct investments or specialized feeder funds.

• Deloitte & Touche LLP
• State Street Corporation (NYSE: STT)
• The Bank of New York Mellon Corporation (NYSE: BK)
• JPMorgan Chase & Co. (NYSE: JPM)
• Goldman Sachs Group, Inc. (NYSE: GS)
• Skadden, Arps, Slate, Meagher & Flom LLP

Michael Arougheti, Chief Executive Officer

Michael Arougheti is a Co-Founder, Chief Executive Officer, and Director of Ares Management Corporation. He co-founded Ares Management Corporation, Ares Management LP, Ares Management LLC, and Ares Management Corp (Private Equity). Mr. Arougheti joined Ares in 2004. Before joining Ares, he was a Managing Partner of the Principal Finance Group of RBC Capital Partners from 2001 to 2004. He was also a Principal and Investment Committee member at Indosuez Capital, which he joined in 1994, and worked in the Mergers and Acquisitions Group at Kidder, Peabody & Co. He became CEO of Ares in 2018, succeeding Antony Ressler. Mr. Arougheti is also a co-owner of Major League Baseball's Baltimore Orioles.

Jarrod Phillips, Chief Financial Officer

Jarrod Phillips is a Partner and Chief Financial Officer of Ares Management Corporation. He joined Ares in 2016, initially serving as Chief Accounting Officer from January 2016 to July 2021. Mr. Phillips was appointed CFO in August 2021. Prior to joining Ares, he was a Partner at Deloitte & Touche LLP, specializing in financial services and asset management assurance and advisory services.

Antony Ressler, Executive Chairman

Antony Ressler is a Co-Founder, Director, and Executive Chairman of Ares Management Corporation. He co-founded Ares Management in 1997. Before co-founding Ares, Mr. Ressler co-founded Apollo Global Management in 1990 after beginning his career at Drexel Burnham Lambert. He served as CEO of Ares until 2018. Mr. Ressler is also the principal owner and chairman of the Atlanta Hawks NBA team.

David Kaplan, Co-Chairman of the Ares Private Equity Group

David Kaplan is a Co-Founder, Director, Partner, and Co-Chairman of the Ares Private Equity Group. He is a co-founder of Ares Management Corporation. Mr. Kaplan joined Ares in 2003, and from 2000 to 2003, he was a Senior Principal at Shelter Capital Partners, LLC. Prior to that, he was a Senior Partner of Apollo Management, L.P. from 1991 through 2000, where he completed multiple private equity investments. He is a co-owner of the soccer teams Swansea City and D.C. United.

Bennett Rosenthal, Chairman of the Ares Private Equity Group

Bennett Rosenthal is a Co-Founder, Director, Partner, and Chairman of the Ares Private Equity Group. He co-founded Ares Management Corporation in 1997. Mr. Rosenthal joined Ares in 1998 from Merrill Lynch & Co., Inc., where he served as a Managing Director in the Global Leveraged Finance Group. He previously worked at Drexel Burnham Lambert. Mr. Rosenthal is a co-owner of the Major League Soccer team Los Angeles FC (LAFC).

The key risks to Ares Management's business operations include its significant dependence on market conditions, the evolving regulatory landscape, and intense competition within the asset management industry.

1. Dependence on Market Conditions and Market Volatility: Ares Management's financial performance, particularly its revenue generated from carried interest, is closely tied to the overall health and performance of financial markets, especially in the credit and private equity sectors. Economic downturns, periods of high market volatility, or unexpected credit cycle shocks can directly and significantly impact the valuation of its investments, the performance of its managed funds, and consequently, its fee-related earnings and carried interest allocations.
2. Regulatory Changes and Compliance Risks: The asset management industry is subject to extensive and stringent regulatory oversight. Any changes in existing regulations, the introduction of new laws, or shifts in tax policies could significantly affect Ares Management's operations. This may lead to increased compliance costs, impose limitations on investment strategies, or alter the tax landscape, all of which could impact the company's profitability and operational flexibility. Historically, the company has faced regulatory actions, such as a charge from the SEC for failing to implement and enforce adequate policies to prevent the misuse of material nonpublic information.
3. Intense Competition and Fee Pressure: Ares Management operates in a highly competitive global asset management industry. It faces numerous competitors vying for investor capital and market share across its various segments. This intense competition can lead to pressure on management fees and profit margins, making it challenging for the company to attract and retain clients and skilled personnel. The need to continuously innovate and differentiate its offerings is crucial to maintaining its competitive position.

Ares Management Corporation (symbol: ARES) operates as a global alternative investment manager, primarily offering solutions across credit, private equity, real estate, and infrastructure asset classes. The addressable markets for these main products and services are substantial and primarily global, with North America often representing a significant share.

Here are the estimated market sizes for Ares Management's main products or services:

• Credit/Private Credit: The global private credit market reached approximately $3 trillion in assets under management (AUM) as of November 2024. This market is projected to grow to about $5 trillion by 2029. More specifically, Ares Management's Credit Group operates in a total addressable market of $40 trillion globally. The United States constitutes a significant portion of this market, with the addressable market for private credit in the U.S. alone estimated to be over $30 trillion. North America holds the largest market share in the private credit market in 2025.
• Private Equity: The global private equity market was valued at USD 787 billion in 2024 and is estimated to reach USD 1,670.43 billion by 2033. Another estimate indicates the global private equity market was approximately $5.3 trillion in 2023 and is expected to reach $6 trillion by the end of 2024 in terms of AUM. Preqin forecasts global private equity AUM to more than double from US$5.8 trillion at the end of 2023 to US$12.0 trillion in 2029. In 2025, the global private equity market stood at USD 17.36 trillion and is forecast to reach USD 34.88 trillion by 2030. North America consistently holds the largest share of the private equity market, accounting for over 33.8% in 2024 and 53.2% in 2024.
• Real Estate: The global real estate deal value saw an 11% increase to $707 billion in 2024, up from $634 billion in 2023. Global private real estate AUM is forecasted to reach $2.2 trillion by the end of 2028 and $2.66 trillion by 2029 from $1.61 trillion in 2023. Real estate represents 21.5% of the alternative investment market in 2025.
• Infrastructure: The total market value of infrastructure assets under management (AUM) globally reached $1.22 trillion at the end of 2024 and an all-time high of $1.3 trillion as of June 2024. This market is poised to reach USD 1.87 trillion by 2026. Global infrastructure AUM is forecasted to reach $1.7 trillion by the end of 2028 and private infrastructure AUM is projected to reach $2.35 trillion by 2029 from $1.27 trillion in 2023.
• Sports, Media, and Entertainment Strategy: Ares Management specifically targets a $750 billion addressable market for its Sports, Media, and Entertainment Strategy, focusing on both open- and closed-end products for institutional and retail investors.

Overall, the broader global alternative investment market, which encompasses Ares Management's offerings, was valued at $12.8 trillion in 2023 and is projected to reach $25.8 trillion by 2032. The global alternatives industry is poised to exceed US$30 trillion in AUM by 2030, growing from US$16.8 trillion at the end of 2023. Global institutional AUM allocated to alternative assets is expected to reach more than $20 trillion by 2029. North America was the largest regional market for Alternative Investment Funds in 2023.

1. Growth in Assets Under Management (AUM) and Fundraising: Ares Management anticipates significant future revenue growth through the continued expansion of its Assets Under Management (AUM) and robust fundraising efforts. The company has demonstrated strong fundraising momentum, with expectations to exceed previous annual records, driven by increasing investor demand across its diverse investment strategies and distribution channels. This AUM growth is particularly notable in private credit, real assets, and secondaries, with substantial undeployed capital available for future investment, which will generate higher management fees upon deployment.
2. Geographic Expansion: Ares is actively pursuing revenue growth through strategic geographic expansion, particularly in Europe and Asia. This expansion aims to capitalize on the increasing demand for alternative investments and non-bank financing in these regions. The firm is exploring new product categories and investment opportunities within these growing markets, further broadening its addressable market and global deal flow.
3. Product Diversification and New Product Launches: The company is focused on expanding its product offerings and launching new funds across various asset classes. This includes the development of infrastructure debt and equity strategies, a push into entertainment rights and legal asset finance, and growth in digital infrastructure and data center asset management. Upcoming fund launches, such as a seventh special situations fund in Asia and a new global digital infrastructure fund, are expected to contribute significantly to future revenue by attracting new capital and generating management fees. Ares has also expanded into the reinsurance market with Mereo Insurance Limited.
4. Strategic Acquisitions: Strategic acquisitions are a core component of Ares Management's expansion strategy and a key driver of revenue growth. Recent examples include the acquisition of GCP International, which significantly bolstered its Real Assets business, added capabilities in digital infrastructure and self-storage, and expanded its geographic footprint across Asia, Europe, and the U.S.. These acquisitions increase AUM and diversify the firm's offerings, leading to higher management and development fees.
5. Growth in Perpetual Capital and Private Wealth Channels: The increasing allocation to perpetual capital and the growing demand for institutional-quality alternative products within global wealth management channels are significant drivers of stable and recurring revenue streams for Ares. Perpetual capital has shown substantial year-over-year growth, enhancing the stability of the company's revenue. The firm has also raised its 2028 AUM target for semi-liquid wealth products, indicating a strong focus on this channel for future growth.

Share Repurchases

• Ares Management utilized $1.2 billion for common stock repurchases in fiscal year 2023.
• In February 2025, Ares Management increased its remaining authorization for its equity buyback plan to $750 million.
• The company's equity buyback plan has been extended multiple times, most recently until March 2026.

Share Issuance

• Ares Management issued approximately $1.9 billion in Ares Class A common stock as part of the acquisition of the international business of GLP Capital Partners (GCP).

Outbound Investments

• Ares Management acquired the international business of GLP Capital Partners (GCP), excluding its Greater China business, for approximately $3.7 billion in cash and $1.9 billion in Ares Class A common stock, with the acquisition closing in March 2025.
• On July 1, 2021, Ares Management completed its acquisition of Black Creek Group's U.S. real estate investment advisory and distribution business.
• In June 2024, Ares Management, in co-operation with Searchlight Capital, invested £500 million in a preferred equity transaction in RSK Group, a UK-based environmental, engineering, and technical services group.

Capital Expenditures

• Capital expenditures were $16 million in 2020, $27 million in 2021, $36 million in 2022, $67 million in 2023, and $92 million in 2024.